Shippers Council, Navy Strengthen Partnership To De-Risk Nigeria’s Maritime Trade

The federal government has a better chance of ending or reducing to the barest minimum the over $500 million war risk surcharge being imposed on Nigeria-bound cargo if the country tackles the exploitation through international diplomacy.

This counsel was given by the Executive Secretary, Nigerian Shippers’ Council (NSC), Dr. Pius Akutah, and the Flag Officer Commanding Western Naval Command, Rear Admiral Abubakar Mustapha, during the command’s courtesy visit to the council on Friday.

Speaking on the claims by shipping lines and shipping service providers that the presence of navy gunboats at Nigerian seaports prove that they are endangered, the naval chief said such claims could be a part of international conspiracies, adding that it behooves Nigeria to change the narrative.

Admiral Mustapha explained that the naval base was co-located with the Nigerian Ports Authority (NPA) before their separation, adding that the navy also has at least two capital ships in areas regarded as hotspots, which have ensured that there is no criminality in the safe or secure anchorage area.

He further explained that during patrol, the navy visits terminals, which he said the terminal operators welcome, adding that it is “the number of reports at the International Maritime Bureau on the number of attacks on shipping that actually translates” (to insecurity) rather than merely seeing vessels.

“Yes, we need to have that posture, too, to deny criminal activities. Our presence shows that our navy is ready and able to protect our waterways, not that there is a problem to translate to war insurance.

Stating that there must be a full-blown war situation for the place to be at risk, he expressed concern with the Nigerian war insurance issue, noting that the same channel within which these ships patrol is the same through which the vessels go to Ghana, yet Ghana is not surcharged.

According to him, the “talk about freight rates and all of that is basically about politics, and this international politics is sometimes skewed against a particular country in that way.

Therefore, “we need to use our diplomatic skills to also change the narrative, tip it towards a positive outlook, de-risking our businesses in this country.”

Aligning with him, Akutah said Nigeria has a duty to defend its policies and decisions, adding that some other countries also have navy ships patrolling their waters.

According to him, “patrol is one critical element to defend your territorial waters. You can’t hide your ship somewhere waiting for a situation to arise before bringing them out. So, you can’t say that because you can cite a warship patrolling the waters, therefore you can tax the country for war risk and surcharge.

“These are political statements; it is a problem that the Minister of Marine and Blue Economy is working with all agencies and stakeholders to get out of. Whatever the political situation may be, we are working very strongly together to see how we can pull out of it.”

Earlier, Akutah described Admiral Mustapha as a square peg in a square hole, who will take the command to more enviable heights, stating that at the core of the Shippers’ Council’s mandate lies the naval command’s commitment at the FOC.

Mustapha had told the NSC management the need for a strategic partnership between both organisations for trade facilitation through port security and regulated maritime operations.

“About 90 per cent of international trade volumes are transported through the sea, which makes you a very important and critical partner in what we do, which is taking care of the interests of shippers,” Akuta said.

“The movement and security of cargo is very important to us. Therefore, our partnership becomes very crucial to what we do. I know that the partnership has been very fruitful, and today again, I know we are strengthening that partnership through your coming on board.”

Highlighting Nigeria’s zero piracy on its high seas for many years running, Akutah disclosed that efforts were ongoing towards delisting Nigeria from the war risk zone in order to reduce the cost of freight within the country’s trade corridor.

Consequently, “your coming here has opened new channels and I guarantee that we take this partnership forward.” He also assured of the Shippers’ Council’s collaboration on the Navy’s forthcoming 70th anniversary celebrations.

He further stressed the need to revive the existing committees on collaborate, stating that issues regarding efficiency in the sector are germane, and that this partnership could deal with that.